HOUSTON—Alaska Sen. Lisa Murkowski said April 20 she intends to actively pursue legislation that would lift the ban on domestic oil exports to help the oil industry, consumers and U.S. allies overseas.
Murkowski, speaking at IHS CeraWeek, said the ban on oil exports equates to a “sanctions regime against ourselves.”
The ban hurts American producers, who have to sell oil at a significant discount to Brent, and it hurts American consumers, whose prices at the pump are higher than they would otherwise be, said Murkowski, chairman of the Senate Energy and Natural Resources Committee.
She noted that at a recent hearing Adam Sieminski, the administrator of the Energy Information Administration, testified a nuclear arms deal with Iran could bring as much as 1 million barrels per day of oil to the global market.
“We should not lift sanctions on Iranian oil while keeping sanctions on American oil,” she said. “It makes no sense.”
Murkowski acknowledged that getting support for the bill will be difficult but that studies conducted in 2014 show that lifting the export ban will not drive up prices.
“Fear that it’s going to drive up my fuel prices, it becomes very personal to people,” she said.
Murkowski also noted that current law allows the president to make exemptions from the ban for a range of reasons including the country of destination and the purpose of the export.
Such an exemption exists for Canada and efforts are underway to grant the same status to Mexico.
“Why stop there?” she asked. “Why not members of NATO, such as Italy, which relies on Libya?”
She noted that Poland relies on Russia, and the enormous refining complex in the Netherlands that serves the European continent and the world does not get U.S. oil.
Traditional energy partners in Asia, such as South Korea, Japan or India, also are cut off from U.S. production.
“America has entered an era of energy abundance. Imports are down, and so are prices,” she said. “We are on the verge of being able to help our allies and trading partners with our energy—instead of competing with them for supply from others.”
Alaska Pain
Murkowski also took aim at federal agencies and policies that are alarmingly deficient and outdated.
“The federal government now routinely fails to permit energy projects, mines and infrastructure in a timely manner,” she said. “The Keystone XL Pipeline, at more than 2,400 days of delay, is the best example. But it is hardly the only one.”
Alaska is perhaps more directly impacted by the oil and gas industry than any other state. The state government gets about 90% of its revenues from the industry. The state budget has a deficit of about $3.5 billion.
Murkowski said that despite its great land mass, about 61% of Alaska—the area of Texas and Utah combined—is controlled by the federal government.
She said that President Barack Obama has rejected some of America’s best opportunities for new development.
“This administration has chosen to lock down the 35 billion barrels of conventional oil in our federal areas, rather than recognizing the jobs, revenues, security and prosperity they would bring,” she said.
She added that Alaskans have always prided themselves on doing the “big, tough stuff.”
Now she’s beginning to sense a discouragement.
“That’s not good for our state,” she said.
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